Education, tax reform top priorities for Oklahoma

Population increase, specialized jobs driving growth in major OK markets

In Oklahoma, 2022 is shaping up to be a year of building on the momentum that started in 2021.

In his State of the State Address this month, Gov. Kevin Stitt said he's focused on "making Oklahoma the most business-friendly state in the nation." His plan for this is two-fold: improving workforce development and tax reform.

"Our state's workforce needs to grow at the same pace as our businesses," Stitt said in his address. "Our entire education system must be aligned and motivated to meet this challenge head on. Let's tear down the silos between K-12, Career Techs and Higher Ed to train the next generation. Every student needs to be college ready or career ready."

He added, "My vision is to create a taxpayer protection plan that responsibly lowers income taxes according to our state revenue. Cutting taxes based on how our economy grows ensures we'll always have money to pay for core services like education and roads and bridges."

Greg Wheeler, President, Oklahoma City, Bank of Oklahoma

Stability is the word of the year, said Greg Wheeler, BOK Financial's^® Oklahoma City market president.

"Oklahoma City is a very stable market," he said. "It doesn't bounce very high, so it doesn't drop very low. It's a very stable growth market. And I think that's true for the entire state."

Specialized industries attracting workers

Oklahoma metro areas are growing. Oklahoma City grew by more than 100,000 from 2010 to 2020 and the Tulsa metro area passed the 1 million population mark for the first time in 2021.

Specialized industry jobs in aerospace, biotech and government, along with a low cost of living, are driving the population growth.

"These specialized opportunities attract people, businesses and start-ups," Wheeler said.

No city is immune to supply chain or inflation woes, he said, but a silver lining in Oklahoma is the increase in per capita income.

"Our state's population is over 4 million now and our average per capita income is around $58,000 per year," he said. "Which is up from $42,000 in 2016. So, we have a lot more expendable income as a population because of that inflation, growth and a state-wide focus on building a more diverse economy."

Source: 2022 Greater Oklahoma City Economic Outlook

With programs like Tulsa Remote offering grants for remote workers to relocate, Oklahoma is also taking advantage of the trend of workers moving out of coastal cities. With new talent coming to the state, comes the demand for additional housing.

Source: 2022 Greater Oklahoma City Economic Outlook

While the state hasn’t seen the big ups and downs that the national market has, it has definitely seen a steady climb, Wheeler added.

He said the cost of living remains a huge appeal for Oklahoma.

"Our cost of living is exceedingly low compared to other markets," Wheeler said. "That has been, and will continue to be, a significant draw to the state for both individuals and businesses."

Overall outlook

"It's not all rainbows, but I'm cautiously optimistic," Wheeler said. "Oklahoma is making some advances towards a zero income tax rate, our property taxes are extremely low and those things factor into long-term growth. I think if we can maintain where we are and make some additional investments in our state infrastructure plus lower our tax liabilities, that will help to continue our stable growth."